Uttar Pradesh was one of the flag bearers in the Indian
Bioenergy sector. The government has always extended its helping hand to
bioenergy entrepreneurs over the year. Most prominent is its bioenergy policy
in 2014 which was eventually updated in 2018. Now in 2022 Govt. of UP has issued
its latest Bioenergy policy focusing on businesses around the agriculture industry
which will eventually contribute to farmer income enhancement and employment to
the locals apart from encouraging entrepreneurship development.
This policy will benefit proposed / upcoming
units along with the capacity expansion of existing units. The policy covers the entire
value chain from the development of feedstock to product utilization. The assured feedstock
is one of the key imperatives for any CBG plant addressed in this policy via
entire supply chain development using barren land utilization for the production of
energy crops which would be used as feedstock for CBG production. The subsidy
provision for mechanization of feedstock production, collection, and storage via
Farmer Producer companies will eventually ensure a steady supply of feedstock
to CBG plants and also ensure steady income to farmers in that area with
periodic cash flow as against other agricultural products but not limited to.
The assured support for evacuation of biofertilizers to farmers via the existing
fertilizer value chain of the government of UP.
The govt is committed to offering financial
support of total 700 cars over the next 5 years which will suppose to build CBG's
production capacity of appx. 1000 TPD. This support is apart from expenditure
on approach road and supply chain development efforts.
Major Highlights of the UP State Bioenergy
policy are as below,
1.
Subsidy
benefits
a. Capex Subsidy for plant based on the production of CBG is offered for plant developers who have LOI and EOI for the
development of the plant. As per policy about 75 lakhs per ton of CBG production
for plant and machinery, basic infrastructure, and utility-related investments.
This subsidy does not cover expenditures on land and administrative investments.
The max subsidy per plant is limited to 20 Cr.
b. Feedstock aggregator will get an additional 30% subsidy up to 20 lakhs over and above the subsidy of the central
government mission for agricultural mechanization scheme. As per the central scheme, all aggregators can get up to 50% of the Capex subsidy.
c. All subsidies shall be deposited to the plant/unit bank account after COD ( Date of Commercial operation of the plant).
2.
Duty
Benefits
a. Electricity duty benefit – All CBg
projects shall get 100% exemption in electricity duty for 10 years from the date of
COD.
b. Stamp Duty – All Stamp duty expenses
on rent, lease, and sales of land for plant and feedstock storage, etc.
c. Development charges exemption as applicable
by respective development authorities.
3.
Other
Benefits – All units over 50 Cr investment will be offered the facility of approach
road up to 5 KM from the plant as applicable by Govt.
UPNEDA will be the noddle agency for these projects
all related matters for the policy duration. All units with LOI and EOI from OMC
can register themselves under this scheme and the required documents are as below,
a. Application form
b. Company registration certificate/documents as applicable
c. Share the certificate of the company
d. Last three financial year balance
sheet. For startup companies financial credentials of the mother/parent group
to be submitted.
e. Detailed Pre-feasibility report of
the project
f.
Non-refundable
Registration fees of INR 10,000/- per plant in the form of a demand draft.
The plant developer shall provide the following
documents within three months of registration for authority approval.
a. Detailed Project Report (DPR)
b. Biomass / Feedstock assessment report
c. Land documents
d. Project planning report with
timelines of critical milestones.
e. Water availability/allotment
documents as applicable.
f.
NOC
of local development authority as applicable.
All developers shall submit performance security for about 3% of the investment of the plant as per DPR estimates. The
implementation agreement shall be done after depositing the performance
security. The plant construction shall be completed within 2 years from the implementation
agreement. Any extension to this shall
be a maximum of 2 months if the said delay is due to reasons beyond the
control of the developer and duly certified by the noddle agency.
The developer will be allotted up to 10 acres of
the land for the processing plant and up to 25 acres of the land for feedstock
storage and handling for a period up to 30 years. All duties regarding land shall
be exempted during the policy tenure.
Noddle agency will facilitate the CBG plant value chain from feedstock allotment to infrastructural support for Bio-fertilizer sale apart for the local dispensing station for CBG evacuation. For more details kindly refer to detailed UP Bioenergy Policy 2022 document at http://upneda.org.in/
